The Department for Work and Pensions has confirmed that Universal Credit claimants can borrow up to £815 with no interest. The one-off loan, called the Budgeting Advance, is designed to help with everyday costs such as furniture, clothes or home repairs, and could reach households across the UK before Christmas.
The amount available depends on individual circumstances. Claimants repay the advance through their Universal Credit payments, usually over 24 months, starting from their next Universal Credit payment.
What the Budgeting Advance covers
A Budgeting Advance can help pay for everyday items including furniture, household items, clothes, funeral expenses, home repairs, and essential items for the family such as mobility aids or child safety products.
The payment cannot be used for ongoing costs such as food, household bills like gas or electricity, rent, or paying off debts.
How much can you get
The amount depends on how much is needed. The smallest amount that can be borrowed is £100. Claimants can get up to £348 if they are single, £464 if they are part of a couple, and up to £812 if they have children.
Eligibility requirements
To qualify for a Budgeting Advance, claimants must have been receiving Universal Credit, Employment and Support Allowance, or Pension Credit for six months or more, and need the money to help start a new job or stay in work.
Claimants are not eligible if they have earned more than £2,600 (£3,600 together for couples) in the past six months, or if they have not paid off any previous Budgeting Advance loans, as only one can be held at a time.
